Kanohar Electricals Limited

Kanohar Electricals Limited was incorporated as a public limited company in Meerut, Uttar Pradesh, specializing in the design, engineering, manufacture, testing, and commissioning of high-voltage electric power transformers, gas-insulated switchgears (GIS), and related substation equipment. The company operates in the power transmission and distribution (T&D) capital goods sector, serving as a critical infrastructure partner to central utilities, state transmission utilities, public sector undertakings (PSUs), and private engineering, procurement, and construction (EPC) contractors. Its underlying business model is engineered around a comprehensive, vertically integrated value chain, enabling the company to design custom high-capacity transformers from raw copper, cold-rolled grain-oriented (CRGO) silicon steel, and aluminum, execute internal fabricating, perform in-house type testing, and deliver turnkey transmission assets.

The company's primary client segments constitute public state electricity boards (SEBs), central power entities (such as the Power Grid Corporation of India Limited), metro rail authorities, and renewable energy developers. Sourcing and supply relationships with marquee public and private players span several decades, reflecting deep client trust and high barriers to entry. Geographically, while the company's primary manufacturing footprint is situated in Northern India, its market reach is pan-Indian. Kanohar has supplied and installed transformers across almost all Indian states, and it actively targets the growing transmission grid expansion across the subcontinent.

The manufacturing infrastructure of Kanohar is highly sophisticated, centralized at its premier, modern plant at the Gangol Road Manufacturing Facility in Meerut, Uttar Pradesh. This plant is equipped with state-of-the-art winding machines, core-lapping platforms, automated vacuum drying chambers, and a high-voltage impulse testing laboratory. For the financial years ended March 31, 2024, 2025, and 2026, the company's annual installed transformer manufacturing capacity stood at 3,500 MVA, 4,500 MVA, and 6,000 MVA respectively. Actual production volumes accomplished were 2,410 MVA, 3,420 MVA, and 4,950 MVA, representing capacity utilization levels of 68.86% in FY24, 76.00% in FY25, and 82.50% in FY26.

Technology and process innovation are key operational moats for Kanohar, supported by its dedicated in-house design and engineering department that utilizes advanced software to optimize transformer efficiency, heat dissipation, and short-circuit withstand capabilities. A major operational highlight is that Kanohar is one of only five domestic manufacturers holding short-circuit test certification for its massive 500 MVA 400 kV extra-high-voltage power transformers from the Central Power Research Institute (CPRI). Furthermore, its strategic technical collaboration with CHEM Taiwan has enabled the company to expand its portfolio into high-end GIS SF6 gas-insulated switchgears up to 252 kV, securing a highly advanced and lucrative technological niche in the domestic power grid capital loop.

As per financial performance, Kanohar Electricals Limited has posted total income / net profits of Rs 281.12 Cr / Rs 17.76 Cr (FY24), Rs 457.30 Cr / Rs 65.12 Cr (FY25) and Rs 662.86 Cr / Rs 129.73 Cr (FY26). So as per previous financials data, the company has shown explosive top-line and bottom-line growth, along with steady deleveraging that brought its gross debt-to-equity ratio down to an ultra-safe 0.10x. Company has an average EPS of Rs 12.03 and average RoNW of 27.99% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 12.62 as per NAV of Rs 50.09 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 7.44. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 281.87, 76.85, and 38.58 respectively. As per RHP, a comparison between listed peers shows its direct listed peer, Transformers & Rectifiers (India) Limited, trades at a comparable Post-Issue P/E of 32.19x, while multinational power transmission giants like Hitachi Energy India Limited and Schneider Electric Infrastructure Limited trade at staggering multiples of 159.55x and 155.12x respectively, confirming that this high-efficiency company is priced at an attractive entry valuation.

On BRLM's front, Nuvama Wealth Management Limited and IIFL Capital Services Limited are associated with this IPO, and IIFL Capital Services Limited has handled 52 IPOs in the last three fiscal years. (as on 03.09.26).

• 1 Mr. Dinesh Singhal
• 2 Mr. Adesh Singhal
• 3 Mr. Vivek Singhal
• 4 Mr. Abhishek Singhal
• 5 Mr. Virat Singhal
• 6 Mr. Aditya Singhal
• 7 Mr. Aditya Singhal